The flooring industry has become more “polarized” Opportunities and crisis coexist

Under the current background of a less-than-ideal economic environment, the development of the flooring industry has begun to develop towards a trend of “polarization”. This is true for everything from the status quo of the development of flooring companies, the premium ability of flooring brands to the operating environment of flooring companies. Under this trend, the flooring industry can be said to be in an era of development opportunities and industry crisis. On the one hand, the strength brands continue to attack the city, expand the country, seize market share and gain development opportunities; on the other hand, some brands with weaker anti-risk capabilities have stagnated or even declined.

The flooring industry is becoming "polarized"

For wood flooring companies, the relevant departments will certainly promote the scale and cluster development of the industry through the promotion of management, the tilt of policies, and the strengthening of supervision, support the merger and reorganization of leading enterprises, and enlarge and strengthen leading enterprises. Provide strong support for industry restructuring and shuffling.

The trend of polarization in the flooring industry is clearly different. The status quo of enterprise development is divided. In 011, the flooring industry suffered an unprecedented dilemma. The international market was weak, and domestic policies regulated. In particular, people in the real estate market had a serious wait-and-see attitude and the volume of transactions dropped sharply, causing downstream of the industry chain. The slump in the flooring industry, the harshness, coldness, difficulty, etc., are common in the media. This is something we have never met before, and it is the reality that we must study and face as entrepreneurs.

Brand premium ability divided into two levels, the overall brand premium in the flooring industry continued to weaken, resulting in continued dilution of corporate profits, which is mainly due to three reasons, the first is a serious homogenization of products, lack of innovation; second is the industry companies The number is huge and the production capacity is showing a surplus. The third and most important reason is that the competition order of market regulation and honesty has not yet been truly formed, and the price war is very serious. However, we also very clearly see that the real focus on brand building, has established the brand status, a small number of companies with brand power, its brand premium ability is significantly higher than most other companies. This requires and reminds us that in order for companies and brands to achieve sustainable development, we must return to the fundamentals of value competition.

The business environment of the company has divided into two levels. In 2011, along with the emergence of policies such as the multiple adjustments in the national reserve ratio, “cash is king” has become a topic of heated discussion in the media. This is closely related to the financial market at that time, but even more so. How we manage funds raises new issues.

Opportunities and Crises Over the past decade or more, the floor industry has risen rapidly. The annual output value has exceeded 30 billion yuan, driving the economic growth of related industries in the upper and lower reaches more than one trillion yuan. In this stage, the development of the flooring industry is basically smooth. Corporate sales channels are expanding rapidly.

However, for an industry whose profits have been excessively thinned, in the current environment, is it still difficult to break through? Reform or transformation? This is an extremely sensitive but necessary choice. In my opinion, attacking and defending are the first to look at the timing. This is the time of the day. The second is to look at their own strengths and abilities. This is a geographical advantage. The third is to look at the channels and talents. This is people.

In order to get a head start on the occasion of the arrival of the aircraft, enterprises should increase product innovation, expand marketing thinking, and reform management models. For qualified companies, now is the best time for enclosures and people.

Differentiation strategy is the wise choice of strategic positioning. Product differentiation is an old-fashioned problem, but product differentiation is extremely important, because it is one of the important factors to ensure market share. Product differentiation mainly reflects three aspects. One is the differentiation of wood species, the second is the differentiation of process technologies, and the third is the differentiated market differentiation. Whichever one achieves the ultimate, it will achieve a more ideal market effect.

At the same time, segmentation of the market is also an important issue. The so-called market segmentation is related to market differentiation in product differentiation. Different brands have different product positioning, and different brands of the same brand have different positioning. We must continuously research The market finds new market segments and quickly becomes the strongest player in this segment. Today's market is no longer unification, and a pharmacy cures all kinds of diseases.

The overall future development prospects of the industry are still optimistic. According to relevant national policy disclosures, during the “Twelfth Five-Year Plan” period, the country will build 36 million sets of affordable housing. At the same time, the direction of China’s urbanization development will remain unchanged, and the rapid economic development will inevitably give Consumers demand high quality of life. Therefore, the outlook for the flooring industry is still bright.

Of course, the bright future does not mean that every company has a chance. Opportunities only belong to companies that are prepared. In the current situation of real estate purchase without any signs of loosening, the impact on the floor companies will not be reduced in the short term, in order to highlight the encirclement, invincible, and only take the road of innovation to open up a new blue ocean.